Bank of India (BOI) has sold 18% stake in the insurance joint venture Star Union Dai-ichi Life Insurance Company Ltd (SUD) to its Japanese partner.

“Upon change in law, Bank of India has sold its 18% stake in Star Union Dai-ichi Life Insurance Company Ltd (SUD) to Dai-ichi Life Insurance Company Limited (DILIC),” the lender said in a regulatory filing.

“The shareholding of DILIC will be 44% up from 26% upon completion of the transaction after receiving necessary statutory/regulatory approvals,” it added. BOI said the transaction was completed on Monday (26 September 2016).

With this, the shareholding of BOI has come down to 30% from 48% in SUD. While, Union Bank of India will continue to hold 26%. SUD was incorporated in 2007 as a joint venture among Bank of India, Union Bank of India and DILIC to undertake life insurance business in India.

As per the terms of the joint venture agreement, DILIC had an option to purchase 18% additional stake in SUD upon change in law related to higher stake by foreign partners in their Indian joint ventures, allowing them to raise their stake from the allowed 26% to up to 49%.

“DILIC has since exercised the call option to acquire the said stake from Bank of India and increased shareholding of DILIC will be 44% up from 26% upon completion of the transaction after receiving necessary regulatory approvals,” it said.